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It’s a classic David vs. Goliath type of battle, but Factory Five Racing, Inc., of Wareham, Mass., won its second battle against legendary car builder Carroll Shelby who sought to stop the firm from producing vintage replicas of his 1960s era cars.

In a ruling issued Feb. 10, 2010 by the US District Court for the District of Massachusetts, the court dismissed Shelby’s 2009 suit that alleged the Type 65 Coupe infringed on the trade dress (design trademark) of the Shelby Daytona Coupe ®. Shelby also filed a similar suit in 2000, also alleging trade dress violations of “designs that relate to the vintage 1960’s automobiles created, designed and made by Carroll Shelby,” including, but not limited to, the Cobra 427 S/C ®.

Factory Five Racing President David Smith and the Type 65 Coupe.

After nearly two years in court, Factory Five and Shelby settled the earlier suit, and that Court dismissed Shelby’s claims of trade dress regarding the kit Roadster and Type 65 Coupe from Factory Five, which are similar to the Cobra  427 S/C® and Daytona Coupe®.

In December 2009, Shelby filed a similar trade dress suit in Los Angeles, California but Factory Five got the suit transferred to Massachusetts, preventing a change of venue. Factory Five filed a Motion to Dismiss based on the Court’s previous judgement.

In a 25-page decision, US District Judge Patti B. Saris said Shelby was legally barred from seeking legal redress as the claims had previously been raised and adjudicated. The ruling also dismissed all existing and future claims by Shelby related to the design of the Daytona Coupe (R) and other claims by Shelby unrelated to the Daytona Coupe ®.

Factory Five’s President, David Smith, stated that it has always been Factory Five’s position that Shelby never had exclusive legal ownership to the shape of the Daytona Coupe® or the COBRA 427 S/C® . “In the 2000 lawsuit, Factory Five had ample evidence to prove that Shelby had no legal rights to the shape of the Daytona Coupe® and COBRA 427 S/C®” said Smith.  Smith believes that Shelby and his lawyers were well aware of these facts, back in 2000, and opted to dismiss these trade dress claims with prejudice rather than try the issues on the merits.  Smith notes that Pete Brock, not Shelby, designed the Daytona Coupe® and only six were constructed in the 1960’s.  These cars were used solely for racing and were never sold in commerce.  Factory Five began manufacturing its Type 65 Coupe in 1999.  Smith believes that Factory Five has manufactured and sold more kit cars based on the Daytona Coupe® then anyone else in the world, including Shelby.

In the press release, Smith added he is cautiously optimistic that the Court’s ruling will once and for all put an end to Shelby’s legal wranglings against Factory Five as well as other kit car companies.  Shelby’s legal bullying has caused Factory Five to endure years of hardship and expend over $1 million in legal fees to defend against what many in the general public believed to be frivolous in nature.  At this juncture, Factory Five is contemplating several options including seeking sanctions against Shelby, a man whose lasting legacy is rapidly changing from racing legend to prolific litigant.

The court decision can be found here, in PDF form: http://www.factoryfive.com/whatsnew/update/lawsuit/1232_001.pdf

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